Tag Archives: RPI

FNC Index: Year-over-Year Growth at Highest since June 2006

The latest FNC Residential Price Index™ (RPI) shows U.S. home prices increased again in February as sales of non-distressed homes continue to rise and regain market share. The index, constructed to gauge the price movement among normal home sales exclusive of distressed properties, indicates much of the nation’s underlying home value shows solid growth as dwindling REO sales fall to their lowest levels since 2007.

In February, the index’s… Continue reading

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Foreclosure Price Discount: A Lemon Discount, A Liquidity Discount, or Both?

The collapse of the U.S. housing market in 2006 has unleashed an unprecedented wave of residential mortgage defaults and foreclosures. It is no coincidence that the mortgage crisis is more concentrated in areas where home prices have experienced steep declines, and in subprime neighborhoods where borrowers tend to have minimum equity in their highly leveraged homes. Despite that the subprime mortgage crisis is now stretching into its sixth year, sales… Continue reading

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Understanding Supply & Demand: Critical for Lenders!

I recently spoke at the American Conference Institute’s Seventh National Forum on Preventing, Detecting, and Resolving Mortgage Fraud in Washington, D.C. After the presentation, an attorney who represents mortgage lenders approached me to say that she felt enlightened. She had never considered that appraisal fraud and potential risk can be revealed by analyzing supply and demand around the subject property.

It’s true. In the Origination arena, analyzing supply and… Continue reading

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Low Appraisal Valuation: Statistical Aberrations or Roadblock to Housing Recovery?

Of the many likely sources contributing to ongoing housing market weakness (e.g., the overhang of distressed and vacant homes; tight credit; poor job prospects; negative income shocks to many would-be first-time homebuyers; disappearing equity on the part of potential trade-up buyers), appraisal valuation –- a key underwriting requirement for screening the risk of mortgage loans in the event of borrower default –- has come under criticism for its alleged role… Continue reading

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Let’s Seriously Do the Numbers.

Last week, ahead of the S&P/Case-Shiller Home Price Index, a number of price indices reported the latest July home price trends. While all indices are pointing to a fairly decent seasonal upswing in the housing market, beneath this consensus lies significantly overlooked differences.

One of these difference concerns what type of sales transactions need to be measured in order to capture a relatively accurate picture of what’s happening to… Continue reading

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The Crash Course: A Review; Plus: Predictions with FNC’s RPI

Recently, I read The Crash Course, a fantastic book by Chris Martenson. In the book, Martenson examines the future of our economy, including energy demands and environmental impacts and makes the argument that our current conditions are unsustainable.

Of particular interest to our industry are pages 85–87, where Martenson discusses the housing bubble. His… Continue reading

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Not All Price Indexes Are Created Equal

What’s the difference between the FHFA House Price Index, the popular Case-Shiller Index, the National Association of Realtors (NAR) Index, and home price indexes provided by CoreLogic and FNC itself?

Similar to the Consumer Price Index – a proxy for what people are paying for products off the shelf – mortgage industry professionals use the residential price indices mentioned above to estimate the value of their products: home… Continue reading

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Remember the RPI

FNC co-founder Bob Dorsey and I have just arrived at the historic (and haunted) Menger Hotel in San Antonio, where Dr. Dorsey has been invited to speak to many of the nation’s leading real estate journalists.

With a conference schedule packed full of industry information, participants of the NAREE conference may be hard pressed to find time to tour the city’s most noted landmark: the Alamo… Continue reading

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FNC’s RPI: Home Prices on the Mend Coast to Coast

Home prices in March continue to show signs of stabilization across the U.S., according to FNC’s Residential Price Index.

Despite reports of deep home price declines, the latest RPI numbers reveal that underlying home values are on the mend. March 2011 is the second consecutive month with better-than-expected price momentum. It’s also the first month that home prices have shown a one-month gain since the homebuyer tax credit… Continue reading

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8 Major Markets in Double-Digit Dip

According to FNC’s Residential Price Index, home prices continue to fall in double digits below the levels seen a year ago in Phoenix (15.7%), Atlanta (14.1%), Orlando (13.5%), Sacramento (11.3%), Portland (11.2%), Las Vegas (11%), Charlotte (11%), and Chicago (10.3%), followed by high single-digit declines in Tampa (9.8%), St. Louis (9.4%), Minneapolis (8.1%), San Antonio (7.7 %), and Miami (7.1%). In particular, the steady declines in recent months in St… Continue reading

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